First of all, allow me to introduce to you who are present. We have our Chairman, Mr. Wan Long. Our newly assigned CEO, Mr. Guo. From Shuanghui Development, we have Mr. Ma Xiangjie and Mr. Liu Songtao. From Smithfield, our CEO, Shane Smith, and CFO, Mr. Glenn Nunziata. Madam Zhang, CFO. I am the host. I'm Robert Wan. Mr. Guo is going to present to us the financial summary for the first half and the business review. We will then proceed to Q&A. Mr. Guo, please. The investors and analysts, friends, good evening. I'm going to report to you the 2021 first- half results and also some business review for the first half. Packaged meats sold 1.6 million tons, up 20.5%. Pork sold 2.1 million tons, up by 10%. Revenue, $13.3 billion, up by 6.8%. EBITDA, $1.23 billion, down by 0.7%. Operating profit, $920 million, down by 0.5%. Profit before tax, $828 million, down by 2.4%. Profit attributable to owners of the company, $539 million, down by 2%. Basic earnings per share, $0.0366, down by 1.9%. According to the financial situation and cash flow, the board has decided this morning that an interim dividend to be released HKD 0.05, which is a flat trend compared to last year. $95 million of the interim dividend will be released in September. For the first half of the year, for our core business, packaged meat contribution to our revenue 48.5%, and profit contribution 8.7%. Pork, a contribution of 46% to revenue and 8.4% to our profit. By region, China's business contribution 40.9% to revenue and 57% to our profit. For the U.S. business, 50% contribution to revenue and 35% to our profit. Europe, 9.5% contribution to revenue and 8.5% to our profit. In the first half of the year, because of higher costs and a higher level of inventory, our cash flow $270 million, a drop of $950 million. CapEx, $321 million, an increase of $87 million. Mainly due to Shuanghui Development's new project investments. Since IPO, together with our interim dividend, we have accumulated $2.63 billion in terms of dividend payout. Interest-bearing liabilities, total equity remain stable. The former stood at $2.8 billion, the latter 25x. In the first half, global grain and food prices rose rapidly due to many factors, including the COVID-19 pandemic, weather, and international trade. Number of slaughter hogs in China increased by 34% to 337 million heads. Number of slaughter hogs in the U.S. up by 1.7% to 64.7 million heads. Supply in China has returned to pre-African swine fever period. Average hog price in China, $25.94 per kilo, decrease of 23.6%. In the U.S., the average hog price per kilo $1.58, up by 66.3%. We see a major drop in China, a major increase in the U.S. In the first half, for China operations, we have seen a substantial increase for slaughtering. Total meat sales also reached a new height. In the first half, processed hogs $5.037 million, up 53.8%. Total meat sales, $1.6 million tons, up 7%. For packaged meat, we have expanded new channels. Some of the leading new products have shown very good growth momentum. Emerging channels such as new leisure, e-commerce, nutritional meals increased sales by more than double digits. Our three main new products, spicy sausage, no starch King of the Kings sausage, and [Non-English content] sausage, reached an annualized sales volume of more than 10,000 tons. For the emerging business, it's been growing rapidly, demonstrating good potential for increased sales. Volume of catering ingredients increas ed by 103%. Self-operated e-commerce business increased by 245%. We continue to enhance our competitiveness by improving vertically integrated pork value chain and expanding our poultry business. Three new pig production projects in Fushun, Nanning, and Shanxi, as well as poultry projects in Xihua and Fushun, are advancing rapidly. In the first half, we realized operating profit of $524 million, a drop of $26 million. Packaged meat, $408 million realized, a drop of $9 million. Pork, $68 million, a drop of $32 million. For U.S. and European operations in the first half, COVID-related costs substantially decreased. For Packaged Meat business, the impact from the COVID situation diminished, with segment results rebounding significantly. U.S. pork business faced challenges as the spread between meat and hog prices narrowed. European business effectively leveraged the vertically integrated value chain to ease operating pressure caused by market dynamics. In the first half, U.S. operating profit $317 million, up 14.9%. Packaged meat, $358 million, up by 47%. Pork, a loss of $17 million, down by $110 million. For our European operations, $79 million operating profit, down by $20 million. Packaged meat, $50 million, an increase of $16 million. Pork, $26 million, down by $44 million. For our next step, we will further enhance our vertically integrated business model and global platform, optimize our product mix, adopt an innovative marketing approach, and improve the level of automation, IT, and business intelligence to expand our market scale. We'll improve product efficiency and cope with various risks, maintain our leading position in the industry, and ensure sustainable development. For our China business, we are committed to launching new products, optimizing product portfolio, expanding market network, and promoting market innovation to achieve volume growth. We will actively develop food service channels and household consumption, nurture new business, and expand into new streams. For the pork business to grasp market trends, we need to reduce inventory, expand production volume, further enhance integrated business model by developing the hog production business, and expand the poultry business to enhance overall competitiveness. In the U.S. and Europe, we'll leverage our advantage of integrated business model to achieve greater economies of scale. We'll reduce costs and improve hog production efficiency through science-based feeding and improved management. Optimize product mix and channels of the pork business to increase market share in the U.S. domestic market. Increase by-product recovery rate to expand export volume and profitability. We'll further increase the volume and profits of packaged meats by giving full play to market advantages. We utilize potential production capacity and optimize product mix. We will continue our efforts in pandemic prevention and control, reduce losses, and ensure stable development of the group. Finally, the European business will continue to effectively prevent animal diseases, focus on local markets, and increase the sales volume of packaged meats. Thank you very much. That is the end of my report. [Non-English content] [Non-English content] The first question from Lincoln from Goldman Sachs, among the three questions. The first one concerns the business in China. We can see that for the second quarter, in terms of the Packaged Meat business, we can see a declining trend for both the sales figures and also the unit price, bringing impact on the per ton profit level. Can you provide some guidance in terms of your whole year, per ton profit performance? [Non-English content] [Non-English content] Thank you very much for your question. Mr. Ma has responded to your question as follows: We have seen a drop in terms of the volume in the second quarter for packaged meat, and we have seen some growth for Q1. For the first half of the year, overall speaking, it is a balanced trend. The major reason is because for Q1 last year, the pandemic situation was very serious, and for the second quarter, we have seen replenishment of our products in the market. Relatively speaking, the sales volume for Q2 was bigger. Looking at this year's trend, it's actually rather on the contrary. For the first quarter, the sales figures were quite high, and for the second quarter, there was very good consumption of the inventory from the first quarter. [Non-English content] The second part of the question is in relation to the unit price. Actually, there are two factors affecting the unit price level. The first being the product structure. Last year, the demand was rather big in the second quarter, and there were high price levels and high profit levels for our products. But the structure for the second quarter this year is not as good compared to last year. The second reason is this year we have actually invested more heavily into the market, leading to a drop of our sales prices. [Non-English content] The final part of your question is in relation to per- ton profit. We have seen a drop in hog prices in the second quarter of this year, and also a decline in the cost in relation to pork raw materials. During the same period, we have seen higher prices for other types of protein, such as chicken meat. We have seen a rising trend for manpower or staffing costs, and we have seen a poorer product structure. At the same time, we have increased the level of market investment, and there are higher levels of fees and expenses. [Non-English content] Our projection for the entire year, according to the current situation and also changes in the market, we believe that there will be conducive factors leading to a rise in per ton profit for Q3 and Q4. Also, there will be beneficial drives for the quarters in terms of our scale and also our cost. We believe that compared to last year, the whole year average per ton profit level will show a stable growing trend. [No-English content] The question is about the U.S. business. We also see the second quarter for the packaged meat segment, we see a decline or dip in the profit margin. Could we elaborate a bit more on the reason behind it, and how are we seeing for the second half in terms of the outlook? Are we still confident for the second half to reach 2019 level or for the full year to reach the 2019 level? Since I think we have Mr. Shane Smith here, I also want to just ask Mr. Smith, I think you have a very good experience in leading the European business before, and also as a chief strategist. Given that you are now in the role of CEO, so in terms of the Smithfield business, is there anything or any aspects you think the business can improve, or any major strategy or shift you want to implement for the business? How do you think about it? Thank you. [Non-English content] Thank you for the question. I'll start with the second question first. As you noted, I have been part of Smithfield for nearly two decades, and most recently, running the European operations. [Non-English content] Smithfield [Non-English content] One of the things that have driven success for us in Europe is learning to maximize the value in the vertically integrated model. [Non-English content] When I think about the U.S. business, I see that as well. I think our vertically integrated model really gives us a competitive advantage over our competitors and can create consistency in earnings to our shareholders. [Non-English content] As we move forward in the U.S. operations, the things we'll be focused on is cost control and raising cost improvements in our hog production operations. [Non-English content] That will come from various health improvement and genetic transitions that will allow us to achieve a best-in-class raising cost. [Non-English content] It will carry forward into the fresh pork operations, where we'll be focused on cost control and getting our cost structures to where they need to be. [Non-English content] That'll lead us into the Packaged Meats business, where one of our key initiatives will be to add value to the fresh pork side by creating more value-added products on the packaged meat side. [Non-English content] That model has worked well for us in Europe, and I believe it'll work well for us in the United States operations. [Non-English content] The packaged meats question. As we move forward, those are the things we'll be focused on. Really, to sum it up is how do we unlock the power of the vertically integrated model, both for our shareholders, our employees, and all of our stakeholders? [Non-English content] To the first question, I apologize if I could have you repeat that. We were having a little bit of audio difficulty in the first part. [Non-English content] Just quickly, in terms of the packaged meat, I think the second quarter, the margin having some pressure on a year-on-year basis or sequential basis. What's the reason behind it, and how do you think the second half outlook for the Packaged Meat business? Well, we're seeing pressure in margins across the business, and that's really as we look at packaged meats specifically as we return to pre-COVID levels. Like all other industries, we're having difficulties with labor and the continuing effects of food service not reopening as quickly as we would have liked. [Non-English content] The second thing I would point out is the increase in raw material costs from extremely high hog prices, as well as other inflationary pressures that we're seeing in the U.S. market. [Non-English content] I can tell you that our sales teams are focused on passing along those inflationary cost increases to our customers. As we look forward through the second half, we're seeing some bright spots. We've seen a food service increase back to nearly 85% of 2019 levels. That's very encouraging for us. As we look at the back half of the year, there's a lot of optimism in our packaged meats business. [Non-English content] Thank you. [Non-English content] [Non-English content] [Non-English content] [Non-English content] Thank you very much. I'm from Citibank. I have two questions in Chinese and one question to follow in English. The first question is for Mr. Wan, the chairman. Thank you very much for arranging this video conference call with every party, and I'm happy to see all of you on the screen. I can see there are three participants from the Hong Kong side, including Mr. Guo and Joanna, and I have just heard about their new appointments, so congratulations. My question for Mr. Wan is, can you elaborate a little bit more concerning the transitional arrangements for the new management? Also, can you provide further explanation behind the rationale? My second question concerns the operations of Shuanghui. We all understand that back in July, it was very unfortunate that we have seen some serious flooding tragedies in Zhengzhou and Henan area in general. I'm just wondering, does that bring any adverse impact on your new product launch schedule? [Non-English content] First of all, I want to thank you, because both your questions concern the situation in Henan. [Non-English content] I'm going to take your first question in relation to the adjustments made to the management team. Also, I will talk about the transitional arrangement, and I will then pass the floor to Mr. Ma to talk about the flooding situation. [Non-English content] Concerning the recent adjustments made to the team of management staff, it belongs to a kind of normal adjustment. [Non-English content] The newly appointed CEO is Mr. Guo, and the newly appointed VP is Mr. Wan Hongwei. For both candidates, I am very happy with their appointment. I believe they are the most suitable candidates for the positions, and I feel very confident in their management capabilities. [Non-English content] I believe Mr. Guo is a very suitable candidate to be the CEO of the company, because of his over 10 years of experience at Shuanghui and also at WH Group. In the past, he has made very important contributions to the group. He has always shown excellent performance. [Non-English content] As for Mr. Wan Hongwei, he has very high educational qualifications, and he has also accumulated many years of experience working for the Group. He has proven to be an important asset to the Company. [Non-English content] I also believe that this current round of arrangements is going to be very suitable for the future development of the company. [Non-English content] As for the support team, I'm also very confident in their capabilities. That will include Joanna for finance and Mr. Zhou Feng for international trade, and also Mr. Wang Dengfeng will also m ake a very important contribution. I believe that they will all discharge their duties very well. [Non-English content] There are two reasons for this round of adjustment to the management team. Non-English content] The first one being the fact that I am going to make preparations for my own retirement. Non-English content] The second reason being I need to identify suitable candidates to take over. [Non-English content] In recent years, I have actually been thinking about this succession issue for quite some time. The reason why I have not retired sooner is because the timing was not yet mature. [Non-English content] If you look at the history of myself and my team, from the Shuanghui era to the WH Group, we're talking about a history of four decades. [Non-English content] In this process, I have seen many changes at the company level. [Non-English content] For example, we transformed from a private company to become a listed company. [Non-English content] We have seen the transformation of being a domestic Chinese company. [Non-English content] We have become this international company with an international footprint. We have also seen the development of the company to become a Top 500 both in China and also globally. [Non-English content] Having gone through decades of development and reform, when I look at Shuanghui and WH Group, I see beyond the fact that they have become listed entities, they are also two inseparable parts. [Non-English content] By looking at our history and experience, I think it's the most important thing for us to be compliant with all the listing rules, and my retirement plan also needs to be compliant. [Non-English content] If you look at Shuanghui and also WH Group in general, what we do is processing for agricultural products. Both domestically and internationally speaking, we have been adhering to the highest standards, and we have been following the principles of doing well our business to continue to expand our scale. [Non-English content] Because of our strategy to stay strong and continue to expand our footprint, me and my team have been able to bring the entities to the Top 500 level. We have actually changed the footprint of the pork business around the world. We have become, globally speaking, the largest pork processing enterprise. [Non-English content] The reason why I think it is now time for me to retire is because for both Shuanghui and WH Group, I have already completed my historical mission. [Non-English content] Before I do retire, I do have a few ideas that I would like to share with our shareholders and investors. [Non-English content] I have set a rule for myself before my retirement. [Non-English content] First of all, when I do retire, I need to make sure I'm leaving behind this huge enterprise. I think I have accomplished that very well. [Non-English content] According to what was reported by Mr. Guo, you should share my positive thinking for Shuanghui, Smithfield, and also WH Group. In the past, we have realized industrialization and expansion in scale, and now it is time to move towards the use of new technologies and smart technologies so as to enhance our overall competitiveness in the market. I'm fully confident with the current team of management to accomplish that. [Non-English content] I'm confident that putting together such talents, including our new CEO, Mr. Guo, and Mr. Ma from Shuanghui, and the excellent team operating the U.S. business, your future achievements will even be greater. [Non-English content] In the past, I have been focusing on this practicality plus capital approach. In the future, I think the new team will combine these two with finance and also new technologies. I think they will overachieve compared to what I have done in the past. [Non-English content] The second point is, when I do retire, I hope that I am leaving behind a set of very efficient and outstanding mechanisms, and I think I have also done that very well. [Non-English content] I think we have been able to uphold this culture of integrity and honesty because of the various mechanisms and systems I have put in place, and they would include those covering items such as internal control, fair competition in the market, budgeting, and also staff appraisal. [Non-English content] We are not just implementing these systems in China; we have actually expanded them into our operations in the United States and Europe. [Non-English content] CEO [Non-English content] Thirdly, I'm talking about leaving behind a very excellent team, and that will include the CEO and also a number of Directors. [Non-English content] The leaders, including Mr. Guo, Mr. Ma, and Shane, they are all very outstanding talents, and that is why I'm fully confident that they will achieve even greater heights compared to what I have done. [Non-English content] As for the position of the Chairman, we are still continuing our work, and once that has been confirmed, it will be the time for me to step down. [Non-English content] For the upcoming Chairman, I'm going to wait and see if that person is fully ready for the upcoming challenges, and when the time is right, I will be ready to step down. [Non-English content] Figuratively speaking, concerning the recent round of adjustment of the management team, it is like that I have provided assistance for them to get on board on the horse's back, and then I'm going to ride with them for some distance before waving goodbye. [Non-English content] I will continue to offer some guidance before they fully become mature for their positions. [Non-English content] Because I want my retirement not to be anything of a disappointment to the enterprise or our shareholders. [Non-English content] Looking back at my life, I have done three things that were very much correct. [Non-English content] The first one is to turn Shuanghui into one of the Top 500 in China. [Non-English content] The second one is to bring WH Group to the level of the global Top 500. [Non-English content] The third achievement would be the adjustment of the management team, and I fully trust that they will be very successful as well. [Non-English content] As for some members of the press, out of different motivations, they have spread certain rumors or even insulting remarks about me. Honestly, I do not care. [Non-English content] The reason why I don't care because in the past, I have already done a lot for the enterprise, and I believe that I have achieved very great successes. [Non-English content] That is more or less all that I want to say today. [Non-English content] [Non-English content] Thank you very much for your reply, Mr. Wan. I can see that you are being very forthcoming and honest in your answer, and I can feel your high level of expectation for the new team of management. I also want to congratulate for your personal successes. Let's move on to the second question. [Non-English content] Well, concerning your second question, first of all, I want to express my sincere thanks for your concern over the situation in the Henan area. As we all know, since the 20th of July, we have seen some serious flooding incidents leading to injuries, deaths, and the loss in property in the Zhengzhou area, and that has actually attracted national and international attention. [Non-English content] Based on the advice of the members of the Board, we have done a lot to help the victims in the affected areas. For example, our enterprise has made a lot of donations for the victims, and we have also given out many of our packaged meat products, resolving some daily needs of those people affected by the disaster. [Non-English content] We can keep our packaged meat products for quite a long time without affecting the quality of the products, and the duration of the flooding incidents was not that long; overall speaking, the sales situation for the enterprise was not affected by the flooding. [Non-English content] In addition, we have seen some new COVID cases in the Zhengzhou area. Because of the very timely and suitable measures implemented by the government, our productions and also our operations have not been affected. [Non-English content] Thank you again. That's the end of my reply. [Non-English content] I have another question for the U.S. side, very short. First of all, my congratulations to Shane Smith for the new post of Smithfield CEO. For the U.S. operation, as we know that, the COVID-19 Delta virus is hitting everywhere. I know that is the back and forth for the recovery everywhere. What's your strategy of monetizing the recovery of the U.S. business while avoid risk operation, especially for your staff and also for the safety of the supply chain? [Non-English content] Thank you for your congratulations. I appreciate that. From a COVID-19 standpoint, you're right, the Delta variant has continued to grow and spread in the U.S. [Non-English content] We're doing a number of things in our operations, from expanding or reinstituting PPE to doing more on-site testing. [Non-English content] This month, we're also running a number of vaccine events at each of our facilities, both for our direct employees and for their families. [Non-English content] This is a very real concern for us as we look at the back half of the year. [Non-English content] As it relates to the business, we're doing a number of things, including working with our customers to find out the SKUs that we can run the most efficiently for them. [Non-English content] SKUs. We're moving our labor pools around to the lines and the products that have the highest net realizable value. [Non-English content] We're looking to different technologies and automation to help us in some of the areas that are the softest. [Non-English content] I think I mentioned earlier, as we look at the back half of the year, as things reopen, normalize, food service comes back, we have a lot of optimism in the business in the second half of the year. [Non-English content] Thank you. Mr. Shane Smith, shall I follow up? You are saying you are optimistic. It's not cautiously optimistic. Is that right? [Non-English content] Cautious. We're always cautious, but as we do, we do see some things coming back that give us some real optimism. You know, when you look at food service and what's happened there in the past, just from Q1 to Q2, we do feel the country opening back up, but we are cautiously optimistic. I think that's a fair phrase. [Non-English content] [Non-English content] Thank you. [Non-English content] Mark [Non-English content] [Non-English content] I have a few questions. The first one is in relation to the fresh pork business. For both the China market and the U.S. market. For the second quarter, I can see that the profit margin has been declining, and that is probably due to the hog price level in general. Since July, we see stabilization of hog prices. What is your projection for the rest of the year? Do you think the second half will outperform the first half? [Non-English content] [Non-English content] This is the response from Mr. Ma. Thank you for your question in relation to the fresh pork business in China. I can tell you that we have seen a momentum of more speedy slaughtering for the Chinese market this year. Because of the depreciation of the inventory, that has led to a poorer performance of our profit margin. [Non-English content] Looking forward into the second half of the year, we believe that hog prices will be substantially lower compared to the first half, and we expect that we will continue to maintain a large-scale increase in relation to our production scale in the second half. The profit level will outperform compared to the second quarter. [Non-English content] Thank you. Okay. Can Shane Smith or Glenn Nunziata provide a comment on the U.S. side? Yeah, I'll say a few things, Robert. As you know, the U.S. business is a spread business, meaning the difference between the U.S. market price for meat and hogs. [Non-English content] Traditionally, in the U.S., the third and fourth quarters are the best quarters for fresh pork. [Non-English content] We have already seen that spread begin to widen in July, and we expect to see that continue through the back half of the year. [Non-English content] We're seeing favorable conditions in Q3, and we'll see a more significant return in Q4. I would tell you our expectation for the full year is probably a $5 or $6 head profit in fresh pork. I'm sorry, can you repeat the figure again? I said that the Which part? All of it? The figure part. The figure? Yeah, the expectation for this year is I feel like we'll be somewhere in that $5-$6 head profit range for the year. [Non-English content] Thank you. [Non-English content] [Non-English content] My second question concerns the packaged meat business in China. First of all, a very simple question. You have set certain growth targets at the beginning of the year, but we have seen the performance of the first half, which is perhaps slightly weaker than expected. Do you think you can catch up and meet the original whole year targets in the second half of the year? In the past year or so, your company has launched many new products, including vegetarian products and family-oriented products. Can you tell us what is the update for these new products? [Non-English content] [Non-English content] Thank you for the question concerning our targets that have been set at the beginning of the year. Well, actually, at the beginning of the year, we expected packaged meat products to realize a single-digit volume growth in terms of sales. When it comes to actual operations, we have seen some difficulties and a lack of preparation or budgeting. With intensified competition in the market, unfortunately, we were not able to realize our original target. The sales growth in the first quarter was 10%, while there was a drop in the second quarter. Overall speaking, the first half was a balanced trend. We expect that there will be a small range of growth for the packaged meat business in the second half. For the entire year, we believe there will be a low single-digit growth. [Non-English content] 186%. As for our newly launched products, they have all performed very well, and some new products have gained a really strong momentum. The first example is 69% growth for our spicy sausage. Another example is for our [Non-English content] sausage, the growth was 123%. [Non-English content] For our food business and ingredient business, you may look at a rather small scale at this moment, but the development momentum is actually very positive, very strong. In the second half and also leading us into the next year, we have a very good source of confidence in terms of growth for this segment. [Non-English content] Thank you. [Non-English content] Sorry, I didn't mean to ask a question. Sorry. [Non-English content] [Non-English content] Do we have any questions from other investors, please? [Non-English content] Thank you for your participation at this historical meeting, and let's all send our best wishes to Mr. Wan.